Blooming for home buyers

We have a beautiful sunny Monday morning in Gaithersburg, Maryland. Our office is busy with contracts being written for home buyers that viewed available properties over the weekend.

Prospective home buyers are reading the news about the mortgage market and smart buyers understand that things we have taken for granted for many years will be changing. There is market pressure for higher interest rates and mortgage lenders are recommending early lock-ins on rates. Fees are to increase on FHA and conventional loan products. The maximum loan amounts for FHA financing are scheduled to decrease. The down payment requirements will be increasing.

What does this mean? This spring be be the time of historical opportunities for home buyers. The prices, interest rates and fees may never be lower. Home ownership is not the best course for every family but for those that aspire to home ownership, earlier may be much more attractive than a later purchase.

I just posted a report that shows 2,997 active listings of homes for sale in Montgomery County, MD. 135 of those listings (5%) are lender owned foreclosures and 19% of them (556) are short sale pre-foreclosures. There are still bargains to be found for those that are ready to move ahead.

The first step for most in the home purchase process is pre-approval for mortgage financing. Please ask us for a referral to a loan officer if you do not have a relationship with a mortgage lender.

Roy and Dolores Kelley visited Longwood Gardens on Saturday, February 12, 2011 to see the Orchid Extravaganza in the Conservatory. A wonderful world class exhibit. Canon PowerShot G11 camera. Photograph by Roy Kelley.

Please contact us for information on homes for sale in Montgomery County, Maryland.

Yes, Dawn. When 19% of the available inventory is made up of short sale pre-foreclosures, home buyers really need to be alert as well as very selective. Some short sales go through smoothly even though most take many months to reach settlement.

In our suburban Maryland market, most of the short sale listings never reach settlement. Many go to trustee sales before short sales are completed. Every week, we see advertisements for trustee sales for active listings. Some buyers are shocked to find that their purchase contracts are meaningless when the homes are sold in the foreclosure auctions at the court house steps. For many, focusing on the inventory of lender owned foreclosures is more likely to end in a successful purchase.

Roy and Dolores Kelley visited Longwood Gardens on Saturday, February 12, 2011 to see the Orchid Extravaganza in the Conservatory. A wonderful world class exhibit. Canon PowerShot G11 camera. Photograph by Roy Kelley

Hi Elizabeth: The trustee sales do provide purchase opportunities. Most of the properties sold at the auctions are actually purchased by the secured mortgage lenders. So, many investors see the trustee sales as preview of what will later be available in the REO inventory. Investors watch for the properties that have enough equity to make it worth while for an investment purchase. These transactions are too risky for most owner occupant purchasers.

Roy and Dolores Kelley visited Longwood Gardens on Saturday, February 12, 2011 to see the Orchid Extravaganza in the Conservatory. A wonderful world class exhibit. Canon PowerShot G11 camera. Photograph by Roy Kelley.

Good morning Patrick. This spring will offer a time of very favorable conditions for home buyers. The prices are attractive, the interest rates are low and qualified purchasers can get in their homes with modest cash requirements.

Roy and Dolores Kelley visited Longwood Gardens on Saturday, February 12, 2011 to see the Orchid Extravaganza in the Conservatory. A wonderful world class exhibit. Canon PowerShot G11 camera. Photograph by Roy Kelley.

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